Pro Tip #8: Knowing Value – Part 2
If you read part 1, you probably were thinking I was saying we should all play for free (don’t do it, unless a charity) and we should all just hug and sing John Denver songs (real name Deutschendorf BTW).
Nope, I’m like any warm blooded human and American, show me the money! let’s derail this train and make money!
Given “value” has two meanings, we can now consider both in our determination of overall value. We’re now armed with our values of why we do it outside of money. We can combine that with money to build our definition of real value!
Ok, back to money. It’s what pays our bills, it’s what puts food on the table, it’s what kept me up at night in my earlier years as I plotted to be a millionaire by 30 years old, it’s what people sometimes get obsessed with and die without enjoying it (where is the fun in that?).
So, let’s talk money. Strictly speaking money, we need to first consider a few value systems.
- The market value
- The values of the bar, venue, restaurant
- The actual values based on numbers
The market value
In this area (and pretty much what I’ve seen in my travels), the market price for a musician performing at a small / medium club in 2019 is $100 per person a night (and it’s going down if we’re not careful). Yes, there are some folks who make more and it’s supported by the number of crowds and even music genres but I’m being general. If I’m wrong here, please message me and give me your secret because everyone I talk to tells me these same basic numbers.
Did you used to make more, absolutely!
Should it be more now?
The musician in me says “damn right, you know how much equipment, time, energy, blood, sweat, and tears I have into this music thing?” but the business analyst in me says “it sort of depends”. Why? Continue reading.
The values of the bar, venue, restaurant
Those places value people. The more people they can serve, the more money they generate, the more they can pay their bills and people. I’m sure they have the internal values as well but we are just talking money. They are after the same things we are, the glorious dollar. Instead of spending their time practicing for years on instruments or singing to be reimbursed, they spend their money they worked for years to obtain in hopes to gain profit (not much different and the goal of everyone, use your assets to bring more assets).
Leveraging some business strategy to get people, they utilize entertainment and other measures. In our case, they desire our bands (notice I didn’t say need us) to bring in crowds, fresh faces, and to entertain. They are essentially gambling at this point at time and asking “Will the band bring in enough people to pay for itself?” If it does, boom… we’re all successful.
One thing to know, bars / venues / restaurants for the most part are not trying to rip you off. They are trying to keep their doors open. Sure, many will try and get the best deal they can but this goes back to the idea of partnering for mutual benefit.
Therefore, knowing what you bring is part of the equation to consider.
Pretty simple. The venue desires people to make money and they need it to pay you. It’s a relationship I’ll most likely write a whole other article on but failure to understand the relationship completely can lead you to either never getting a gig due to your own perceived values, a disdain of clubs all together, or limit your ability to negotiate the best deal.
Given that info, we can start to formulate things.
The actual values based on numbers (door or ticket sales)
Spoiler alert: your perceived value may not align with the actual value to others mathematically. Don’t shoot the messenger! This is a ugly reality and I did not enjoying typing it.
First, let’s categorize the places you want to play.
- Large – 500+ people (Casino / Mega Club / Concert Venue)
- Medium – 200 – 300 people. (bar, restaurant, venue)
- Small – Less than 100 people. (bar, small venue)
If you are playing the large, this article probably never applied. You are already with an agent or you’ve been through the small to medium to get where you are at. You’ve obviously got your stuff together and have a large draw. That’s awesome!
However, for us more normal working folks, let’s focus on the medium and small clubs and cover bands. Original bands are a different beast and unfortunately get even less sadly.
For quick math sake, small or medium clubs charge / or expect $5 a person as a baseline.
That means, the number of people you bring would determine what value (money) others may see versus maybe your perceived value. Think of it like ticket sales or even door sales (although there is a difference)
- 25 people = $125
- 50 people = $250
- 100 people = $500
- 200 people = $1000
- 300 people = $1500
If that were ticket sales and you sold 25, you made $125. Does that mean your band is only valued at $125.. i don’t think so.. but.. the numbers do. The bar / venue / restaurant may feel the same.
It’s kind of like a gofundme where you ask for $2000 and you get $125. It’s reality versus the perception of things. You may feel like you should have gotten $2000 but people may not like you as much as you think, at least not enough to let go of their hard earned money.
Even worse, a true “ticket sales model” in places like L.A. would require bands to actually pay money to play a location and then sell tickets to reimburse themselves and make profit (yikes).
And possibly even worse, companies like live nation are now exclusively signing contracts with venues / bars where they take a cut off the ticket sales and who knows how much more. I got to do more research on this but just yesterday they just signed the basement east in Nashville. Not sure the fallout for bands just yet (hopefully it’s positive?)
So how is the door different? The door is a collective of work where all parties share from the effort. Much like profit sharing, both bands and venues are working towards the promotion of an event. Everyone benefits from the hard work and nobody gets left out in payment. Bands receive those rewards generated by the venues hard work and promotion and investment as an example. (hint: choose venues that also partner). Some venues / bars are doing a guarantee plus door (overage).
So are ticket sales and door deals bad? It depends again.
If the Kid Rock asked you to play in front of 50000 people but only gave you $150 in tickets (to sell), is that good value? YES. Did you compromise on your “we know our value” absolutely no. You invested in your band and that gig is paying huge returns towards the real value.
If your local venue is packed and the place is electric with music lovers who will follow and become fans to your next event, is the door deal good value? YES. You invested in your band and it will pay dividends.
If the place usually has 10 people with no structure, no PA, and they are all drunk worth a door deal or ticket sales? NO. That is divesting in your band and brand.
Is playing the same places over and over with the same material good? oh, that’s a different subject. Short answer NO!
Simple rule: Assets bring your things. Liabilities take things away. Consider this in every step in your bands journey if you can.
Oh my, the meme is true! Musician: someone who loads $5000 worth of gear into a $500 car to drive 100 miles to a $50 gig!
Something to mention, at no point did I say anything about free. I don’t recommend it unless it’s for a charity. If you do, you could be impacting the market value we do have.
I wanted this article to be something which would spawn thoughts and just maybe put a different perspective on why we are generally seeing those rates in the area. I know in the 90’s it was around $1000 a night, 2000’s was around $750, and by 2015 it’s become $500 and dropping. You are seeing more lead singers doing solo projects and karaoke because venues / bars are not seeing where the numbers line up and the crowds are about the same. No disrespect for those solo folks, you guys are on the money.
It should however cause us to think, how did we get here and what can we do about making a change? Reviving live music and creating the scene (#CTS) !
My biggest hope is that this article would present another perspective and that together working with each other and bars / venues / restaurants, we can all receive value together that is fair and equitable and that increases the exposure of live music in real numbers with real expectations. I feel if we collectively work together, we’ll create a thriving music scene which will get those number back up in the market value and we’ll be having fun while we do it.
BTW, I’m waiting for people to say “I wouldn’t even get out of bed for $500”. My response, not talking about you dude, you are the best. Rock on.
Last, this video of the “beard of truth” gives a perspective from a working drummer. He reminds us why we got into music in the first place and shows a guy playing big shows and enjoying himself while doing so. Good stuff.
Thanks for reading and rock on.